FM allows Andhra to borrow additional Rs 1,515 crore to undertake power sector reforms

The Finance Ministry on Thursday allowed Andhra Pradesh to borrow an additional Rs 1,515 crore for undertaking power sector reforms. As part of the reforms, the state has started Direct Benefit Transfer (DBT) of electricity subsidy to farmers with effect from September 2020. Thus, it has successfully implemented one of the three stipulated reforms in the power sector.

“Successful implementation of the reform has made the State eligible to mobilise additional financial resources equivalent to 0.15 per cent of its Gross State Domestic Product (GSDP). Accordingly, the Department of Expenditure has granted permission to the State to raise additional borrowing of Rs 1,515 crore. This has provided the much needed additional financial resources to the state to fight COVID-19 pandemic,” it said.

Madhya Pradesh has also undertaken reforms in the power sector.

Accordingly, the state was given additional borrowing permission of Rs 1,423 crore, equivalent to 0.15 per cent of its GSDP on January 18, 2020-21.

ET Energy World
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